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Can this article be related? CH Offshore is in the oil and gas industry:
Mid-East equity fund eyes S'pore firms
By CHOW PENN NEE
(SINGAPORE) A Middle Eastern private equity fund is sniffing around for listed Singapore companies to invest in.
It is searching out 'undervalued companies' in sectors where the fund has expertise, so it can help them grow. Of course, the usual criteria like good growth potential of the company and sound management are still required, too.
Qatar-based Gulf Asia Pacific (GAP) Equity Fund started in April and invests in companies in the Gulf and in the Asia-Pacific region.
The fund aims to bridge the two regions by helping Asian companies expand to the Gulf, and for Gulf companies to expand in the Asia-Pacific.
Sheikh Faisal Al Thani, founder and majority investor of GAP Fund, said in an interview with BT yesterday: 'We will use Singapore and Qatar as our bases, and identify companies from these areas.'
The fund has a representative office in Singapore. It is bullish on prospects in the Asia-Pacific region. Besides looking at Singapore, it is also considering investing in companies in countries such as China, India, Japan, Malaysia and Vietnam.
Sectors which interest the GAP fund include oil and gas, recycling and education. Sheikh Faisal said GAP is looking at two such companies in Singapore and another two in the Gulf.
The fund expects minimum returns of 20 per cent or so when it takes an equity stake in these companies and turns them around.
'We have expertise in these areas and we believe we can add value to them by taking a stake in them,' said Sheikh Faisal.
GAP representatives will sit on boards of the companies the fund invests in, providing advice and helping to direct strategy.
Among the Singaporean investors in the fund are Tan Kim Seng, founder and executive chairman of KS Energy Services, which distributes oil and gas products; Andy Lim, chairman of publicly listed Advance SCT Ltd, which recycles copper materials; and Terence Tea, founder and chief executive of Advance SCT.
With experience in these sectors, they have the authority to advise on companies they invest in. Sheikh Faisal himself has 20 years of experience in the oil and gas industry in Qatar, with stints in Qatar Petroleum, Arco Qatar and BP in Qatar.
Responding to the occasional negative image that accompanies private equity, Sheikh Faisal said that the GAP fund does not seek to go in, cut costs, fire workers and exit with a huge profit.
He gave as a case in point the fund's 5 per cent stake in Transview Holdings, a mainboard-listed distributor of golf equipment, which has helped the 'undervalued' company grow.
'We found good potential in the company to expand to the Middle East, since golf is taking off in a big way over there,' he said.
The fund now wants to expand the company's scope from just distributing equipment to golf course management and opening up a golf academy.
'This is how we raised the profile of the company', he explained, noting that Transview's share price has now more than doubled, reaping more than 100 per cent in returns for the stakeholders.
Sheikh Faisal is now non-executive chairman of Transview.
GAP is currently a more-than-respectable US$100 million fund, but it aims to increase the fund size to US$1 billion in about five years.
All of its investors are individual people, half of whom come from the Gulf, and the other half from Singapore.
CH Offshore is in the range from $.34 to $.445 for many years (Jul 2003 to April 2007). Suddenly activities started from 30th April 2007 to date, and big jump in prices, yesterday traded to $.68 and Volume of 8.5M. WHY?? Any news??
KimEng reiterates BUY target $0.85!!!!!!!!this morning. CHEONG AH!!!!!!!!!!!!!
CH Offshore?s (CHO) fleet currently comprises 17 Anchor Handling Tugs & Supply (AHTS, 10 of the older vessels are around 24-25 years and almost fully depreciated), two co-owned with its Malaysian partner and six larger deepwater ones under construction. Demand has been strong with present fleet utilisation at 92%. Most of the older vessels have been chartered out in the spot market, which has been rising steadily. This isn?t a bad situation to be in as spot rates have climbed by around 50% or so over the past year. If rates continue to trend up, CHO would then be positioned to capture more upside from either chartering the vessels out or by disposing the older assets for a tidy profit. CHO is well positioned to capitalise on the increasing demand for deepwater AHTS as it has a total of six 12,240 BHP DP2 AHTS on order, which are expected to be delivered progressively from December 2006 to February 2010; one was delivered in December 2006. The latest vessel secured a bareboat charter in Australia which could potentially generate profit of about US$6.0m per year. The implied payback period is about three years! CHO sold a similar vessel for a profit of US$11.4m in FY07. Anecdotal evidence suggests that vessels of this size commands a price tag of US$38-40m and will cost about US$33m to build. With most yards operating at full capacity and equipment makers facing production capacity being squeezed, the earliest AHTS deliveries will probably only be in 2010. CHO?s strategy is to renewal its older vessels over the next two to three years. With each of its older vessels almost fully depreciated, gains per vessel could average US$2.5m or more. 10 of its vessels were built in the early 1980s and are hence carried at zero or very low book value. For instance, in November 2006, CHO disposed of an old vessel, RT Rednet, with a gain of US$5.9m vis-à-vis a consideration of US$6.2m. We however note that this vessel was 8,000 BHP compared to the currently older vessels which have capacity of around 5,000 BHP. We estimate CHO?s RNAV to be around US$340m or S$0.72 per share, implying CHO is trading at 0.8x its RNAV. CHO?s underlying value is underscored by the General Offer for Chuan Hup shares. The stock is trading at very attractive PE multiples of 7.3x and 11.2x for FY07?08, respectively ? this is particularly so as we have not factored in asset sale gains from FY08 onwards (reflected by the drop in EPS from FY07 to FY08). Our target price of S$0.85 is based on 15.8x 2008 PE, derived from 0.3x PEG. We expect the stock to outperform over the next 12 months, driven by an improving earnings outlook and possibly increasing coverage. |
Kim Eng targets $0.85!!!!!!!!!!!!!!!!!!! CHEONG AH!!!!!!!!!!!!
Very attractive valuation, expect an outperformance
CHO?s underlying value is underscored by the General Offer for Chuan Hup
shares. The stock is trading at very attractive PE multiples of 7.9x and 8.9x for
FY07?08 respectively ? this is particularly so as we have not factored in asset
sale gains from FY08 onwards. Our target price of S$0.85 is based on 15.5x
2008 PE, derived from 0.3x PEG. We expect the stock to outperform over the
next 12 months, driven by an improving earnings outlook and possibly increasing
coverage
Any comments on this stock?
singaporegal, do you mean 1.6+million shares a day is low volume for ta people.what sort of volume is require for ta chart people? to consider ok